1. 1
THE HISTORY OF HERSHEY’S
The captivating story of Hershey's spans nearly a century and a half of industrial and social
change.
Milton Hershey, the man behind Hershey's Chocolate, opened his eyes to this world, on
13th
September 1857. He developed the love for candy at a very tender age only and started his
career as an apprentice to a candy-maker in Lancaster, Pennsylvania.
CHRONOLOGY:
1876
At the age of eighteen, Milton laid the foundation of his own candy shop, in Philadelphia.
However, the shop closed down after six years only, following which he moved to Denver,
Colorado, and started learning the art of caramel-making.
1886
Milton moved back to Lancaster, Pennsylvania, and launched the much-successful Lancaster
Caramel Company. The company grew by leaps and bounds.
1893
Milton attended the Chicago International Exposition and ended up buying German chocolate-
making machinery and started producing chocolate-coated caramels.
1894
He started the Hershey Chocolate Company, selling off his caramel business. With this, he
started the production of Hershey chocolate caramels, breakfast cocoa, sweet chocolate and
baking chocolate.
Interesting Information On Background & Origin Of Hershey's Chocolate
Within six years of starting Hershey Chocolate Company i.e. in 1894, Milton began the
production of milk chocolate, in the form of bars, wafers and other shapes. As the methods of
mass-production became popular, the company was able to lower the per-unit cost of milk
chocolate and bring the product within the common man's reach. The chocolate was an
immediate success and witnessed heavy demand. To cope up with the rising orders, Milton
decided to increase his production facilities.
Soon, Hershey witnessed the opening of a new chocolate factory, amid the gently rolling
farmland of south-central Pennsylvania, in Derry Township. The location was close to the ports

2. 2
of New York and Philadelphia, from which the factory sourced its imported sugar and cocoa
beans. At the same time, it was surrounded by dairy farms, easily providing the much-needed
raw material - milk. Even the supply of honest, hard-working labor came locally. In short,
Pennsylvania proved the ideal location for the chocolate factory.
The new factory came into operation by the summer of 1905, when it started producing
delicious milk chocolates. With time, Milton started looking forward to expanding the product
line of his company. In 1907, Hershey Chocolate Company began producing flat-bottomed,
conical milk chocolate candies. Given the name of 'Hershey’s Kisses', they were initially
individually wrapped in silver foil. Machine wrapping was introduced in 1921. Sometime later,
the plume was added to the chocolates and in 1924, they were trademarked as well.
The early 1900s saw the introduction of a number of products in Hershey Chocolate's offerings.
These included Mr. Goodbar (1925), Hershey’s Syrup (1926), Chocolate Chips (1928) and the
Krackel Bar (1938). Such was the popularity of Hershey's products and the business acumen of
Milton that the company maintained its profitability even during the Great Depression and
managed to avoid any worker layoffs. As World War II started, Hershey Chocolate started
producing a survival ration bar for military use.
By the time World War II ended, Hershey had supplied more than a billion of the survival ration
bars, known as Ration D bars. It had even earned five Army-Navy “E” Production Awards, for its
exceptional contributions to the war effort, which included making parts for the Navy’s
antiaircraft guns. In 1956, seven years after the death of H.B. “Harry” Reese, H.B. Reese Candy
Company was sold to Hershey Chocolate Corp. This was expected, considering the fact that
Hershey Chocolate had been supplying the coating for REESE’S “penny cups, since long.
In 1968, Hershey Chocolate was renamed as Hershey Foods Corporation. In the decades that
followed, the company witnessed the expansion of its confectionery product lines, acquiring of
related companies and diversification into other food products. Today, Hershey is amongst the
leading North American manufacturers of chocolate and non-chocolate confectionery and
grocery products.

3. 3
MAJOR COMPETITORS OF HERSHEYS:
Some of the major competitors of Hersheys are:
Mars Inc.
Cadbury & Krafts Food Co.
Nestle SA
Ferrero Group
MARKET LEADERS IN CONFECTIONERY INDUSTRIES
14.8
10.3
7.6
4.8
4.5
Mars
Cadbury
Nestle
Hershey
Kraft
MARKET SHARE BY VOLUME
MARKET SHARE BY VOLUME

4. 4
MARKET SHARE OF ALL THE MAJOR COMPETITORS IN THE CONFECTONERY INDUSTRY
GLOBAL MARKET SHARE
MARS
Global Market Share: 14.6%
Best-Selling Candies: M&Ms, Snickers, Milky Way
Etc: Snickers was named after the Mars family's favorite horse in 1930
NESTLÉ
Global Market Share: 12.6%
Best-Selling Candies: Nestlé Crunch, Butterfinger
Etc: Just bought Kraft's frozen pizza business and said it wouldn't bid for Cadbury
KRAFT
Global Market Share: 8.3%
Best-Selling Candies: Milka
Etc: Milka's mascot since 1901 has been a purple cow
FERRERO
Global Market Share: 7.3%
Best-Selling Candies: Ferrero Rocher
Etc: The Italian company is known for its chocolate-hazelnut spread Nutella

5. 5
CADBURY
Global Market Share: 6.9%
Best-Selling Candies: Cadbury Creme Egg
Etc: Cadbury became solely a confectioner after spinning off its beverage business in 2008
HERSHEY
Global Market Share: 6.7%
Best-Selling Candies: Hershey's, Hershey's Kisses
Etc: America's milk chocolate pioneer has been considering making an offer for Cadbury
42
25
7
8
4
3
2
9
The Hershey Co.
Mars Inc.
Russel Stover
Nestle USA Inc.
Lindt & Sprungli
RM Palmer Co.
Private Label
Others
0 10 20 30 40 50
US MARKET SHARE
US MARKET SHARE

6. 6
COMPARATIVE STUDY OF ALL THE MAJOR COMPETITORS
On the basis of:
PRODUCT
HERSHEYS CADBURY & KRAFT MARS NESTLE
Milk Chocolate Bar Dairy Milk Mars Smarties
Almond Bar Fruit & Nut Snickers MilkyBar
Dark mildly sweet
chocolate Bar
Roast almond M’n’M Chokitos
Cookies ‘N’ Crème Crackle Skittles Pollywaffle
Air delight chocolate
Bar
5 Star Twix White knight
Hershey’s Drops Relish 3 Musketeers Peppermint crisp
Hershey’s
Miniatures
Picnic Bounty Crunch
Hershey’s Nuggets Perk Milky Way Club
Mr. Goodbar candy
bar
Gems Kudos Golden Rough
Symphony Bar Nutties Galaxy Nesquik
Sugar free chocolate Caramel Marathon
Googly Tracker
Mr. POP Revels
Dolmio
Flyte
M-Azing
Minstrels
Seeds of Change
Promite
Analysis:
According to the above table, it is clear that when we compare Hershey’s products with
that of it competitors, Mars Inc. emerge as the leader. Mars has the maximum number
of products available in the market followed by Cadbury. Hersheys fall on the third place
closely followed by Nestle.

7. 7
On the basis of:
PLACE
Hershey’s:
The first plant outside Hershey, Pennyslvania opened on June 15, 1963 in Smith Falls, Ontaria,
Canada and the third opened on May 22, 1965 in Oakdale, California. In February and April
2007 Hershey’s announced that their Smith Falls and Oakdale plants would close in 2008, being
replaced in part by a new facility in Monterrery, Mexico. The Oakdale factory closed on
February 1, 2008. Hershey chocolate factory in Sao Rogue, Brazil was opened in August 2002.
Hershey also had plants in Stuarts Draft, Virginia; Lanchaster, Pennsylvania; Hazleton,
Pennsylvania; Memphis; Tennessee; Robinson, Illinois and Guadalajara, Mexico.
Cadbury:
Cadbury produces chocolate for more than 200 countries so that they have a chance to enjoy it
as well and make profit. This gives them a wide range of consumers around the world. Cadbury
Schweppes therefore makes sure that the cultures of these different people are kept. They can
do this by producing products, which are eaten in that particular country without upsetting
religious or cultural practices.
Mars:
Mars Inc. are very popular globally, Mars chocolates are eaten all over the world with Mars Bar
and Snickers being the most popular. It has factories in 68 countries worldwide. It has one of
the biggest share in the chocolate industry because of its wide reach all over the world.
Nestle
Nestle again has spread worldwide.Nestle when entering a new market does not goingalone
but it looks for partners and mergers. Till nownestle has collaborated with companies many
MNCs etc.It is because of this world wide spread that now itis coming up with Advertisements
which can be broadcasted in the different nations in the
world. The recent example with would be the Nestle
advertisements having “Deepika Padukone” as its brand ambassador.

8. 8
On the basis of:
PRICING
Hershey’s
Hershey’s pricing strategy is to maintain the price level at a consistently high rate. In India it
targets mostly foreigners and upper class Indians.
Price cut off or no increase in prices but products weight would be reduced.
Cadbury
Price is an important element of the marketing mix. The price charged for a chocolate bar can
determine whether a consumer will buy it and the level of sales achieved can determine
whether or not Cadbury Schweppes will make a profit. Price is also affected by factors such as
the state of the economy, what competitors are charging, the stage reached in the products life
cycle and above all what price the market will bear. From the marketing point of view this is
what matters.
Mars
Mars’s has been marketed as a mass market chocolate product, targeting children, teenagers
and working adults. Pricing for Mars is modestly priced. This is an affordable candy that
everyone can afford and enjoy.
Nestle
Nestle again decides it price on the basis of competition. The best think about the company
nestle is that it is very flexible and it can come down with the price very quickly. The company is
renowned to bring the price down even up to half if needed.
But this risk taking attitude has also earned nestle losses. Though lowering the price would
attract the customers but it would not help them cover up the cost incurred in production
hence causing them losses. This was the situation earlier but now nestle is a full-fledged and
growing company.It has covered allits losses and is now growing at a rapid rate.

9. 9
On the basis of:
PROMOTION
Promotion is one of the four aspects of marketing. Promotion comprises four subcategories:
1:Advertising
2:Personal selling
3:Sales promotion
4:Publicity and public relations
The specification of these four variables creates a promotional mix or promotional plan. A
promotional mix specifies how much attention to pay to each of the four subcategories, and
how much money to budget for each. A promotional plan can have a wide range of objectives,
including: sales increases, new product acceptance, creation of brand equity, positioning,
competitive retaliations, or creation of a corporate image. Nowadays nestle going in for Brand
Ambassadors to promote their product.
These brand ambassadors are famous people who usually people idolize and people can relate
to them.
Hershey’s
Advertising
Hershey company’s most recent examples of advertisings are listed below:
1. Carolers
2. Drops
3. Mother and Daughter
4. 4. S’mores
Personal Selling
The customer can deliver without additional charge. Hershey’s does not have Personal Selling.

10. 10
Sales promotion
The commercialization of many holidays is continuing to expand and the popularity of gifts for
these holidays is also increasing. Hershey can provide holiday product in outlet other than their
website.(i.e. Hallmark, Barnes and Noble).The increase in the importance of commercialized
non-traditional holidays(i.e. sweetie days, grandparents’ day, and boss’s day) and traditional
holidays (i.e.Christmas, Valentine’s Day, Mother’s day, Halloween)allows Hershey to optimize
the importance of their speciality gifts products. By providing their gifts using retail channels,
Hershey has an opportunity to increase the sale of their specialized gift products.
Publicity and Public Relations
Hershey appointed Arnold Worldwide to create fully integrated advertising and marketing
programs for its core chocolate brands, including Hershey’s, Reese’s, Hershey’s Kisses, Take 5,
York and Kit Kat. Arnold is known for building brands through multi-faceted programs that
include broadcast, print, design, interactive, direct, promotions and public relations.
Cadbury
Advertising
The advertisement aimed at conveying the idea that no specific occasion is required for
consuming Cadbury chocolate.
Celebrities Endorsements
Cadbury roped in Priety Zinta for its Perk brand. Priety Zinta’s angelic dimples lair the
foundation for what would become the Indian teenager;s favorite snack. After this campaign,
Perk’s sale surged.
The Big ‘B’ factor
The big factor that has pushed up Cadbury sales is the Amitabh Bachchan campaign. Cadbury
appointed Amitabh Bachchan as its Brand Ambassador.
Mars
Still wholly owned by its founding family, packaged foods giant Mars is one of the world's
biggest private companies, with annual sales in excess of $30bn. In addition to its globe-
spanning confectionery brands, which include Snickers, M&Ms, Starburst and Skittles, the
company is one of the leading worldwide manufacturers of petfood, through Pedigree and

11. 11
Whiskas and other brands, and also manufactures sauces and easy-cook rice-based meals
under the Uncle Ben's umbrella. n April 2008, in by far the biggest acquisition in the company's
history, Mars acquired gum and mint giant Wrigley in a substantial $23bn deal which made it
the world's largest overall confectioner. It was pushed back into second place two years later by
the merger of Kraft and Cadbury. In chocolate, it still ranks behind Hershey in the US, although
Mars has a far wider global spread. M&M's and Snickers are the world's best-selling
confectionery brands.
Nestle
Nestle launches new campaign for KIT-KAT; uses animation for the first time in india. this is an
advanced promotional activity used by Nestle in India.
Nestle advertise its products through TV commercials, Print Media, Bill boards etc. The
advertising budget is preplanned at the starting of the financial year which is kept secret by the
company. Nestle do not have any sponsors. Deepika Padukone is the brand ambassador for this
brand in India. The product is marketed aggressively in the market.

12. 12
COMPETITIVE ADVANTAGES
Hershey’s
Hershey Foods has gained popularity embodying favorite American adjectives
like "biggest," "fastest" and "most."
The Hershey Bar and the Hershey Kiss, specific brands most readily identified
with Hershey, retain an old-fashioned brand. They are sold using simple
packaging, which has remained (more or less) the same for 100 years,
reasonable pricing, and steady quality.
As an all-American brand, Hershey capitalizes on patriotism and loyalty.
It has been the official chocolate of the American military since World War I,
when Hershey Bars were included in soldiers' rations.
Today, the company leads the American market with its brands, accounting for
38 percent of all chocolate sold in the US. This figure is more impressive when
we consider that the American market is the world's largest consumer of
confectionery.
Broad product portfolio stabilizes the company’searnings.
Focusonresearchanddevelopment(R&D)helps Hershey to gauge the emerging
market for healthier snacks options.
Cadbury:
Cadbury is the largest global confectionery supplier, with 9.9% of global market share.
High financial strength.
Strong manufacturing competence, established brand name and leader in innovation.
Advantage that it is totally focused on chocolate, candy, chewing gum, unique
understanding of consumer in these segments.
Successfully grown through its acquisition strategy. Recent acquisitions, including
Adams, 2003, enabled it to expand into important markets like the US market.
Nestle
Leading overall market position and number one or two brands in most areas.
The extraordinarily large scope of Nestles business provides for significant economies of
scale in manufacturing, marketing and administration.
The research and development capabilities allow the Company to lead the way in
innovation and provides for maximum portfolio flexibility.

13. 13
SUGGESTIONS FOR HERSHEYS
Enhancing market presence through acquisitions and licensing agreements Growth in the
global confectionery market. Streamlining businessthroughrestructuringoperations and supply
chain management.
The main competitors of Hershey Foods are Mars and Nestle. Mars is already a threat for
Hershey, because Mars has a stronger presence than Hershey in Europe, Asia, Mexico, and
Japan. Hershey should pay special attention towards marketing its products in these areas.
Unlike Hershey, Mars has historically relied upon extensive marketing and advertising
expenditures to gain market share, rather than on product innovation. Taking a lesson from
this, Hershey should also increase its advertising budget.
China and India are huge untapped markets. Malaysia, Indonesia, Vietnam, and Thailand
also are untapped, So, Hershey has the opportunity to gain a foothold in those Countries.
There is another opportunity for Hershey to develop environmentally safe products and
packages, reducing industrial waste, recycling, and establishing an environmental audit
process are strategies that could benefit Hershey.
Another opportunity is that Hershey diversifies more into non-chocolate candies because
that segment is growing most rapidly in foreign countries like U.S & U.K.
Hersheys should adopt Positive market outlook.
The company should diversify its products.
Growing market for premium chocolate products
Hersheys should market itself as a health conscious brand.